Microsoft Reports $23.6 Billion in Revenue Driven by Office and Azure

Microsoft has released their financial report for their fiscal year Q3 2017 that ended in March. The company reported revenue of $23.6 billion for the quarter which was down slightly from what analysts had expected. Their expectation was $23.62 billion and it has impacted their stock in after hours trading. The positive however were around Microsoft’s cloud solutions and Office. Cloud revenue, principally Azure, were up 11% to $6.8 billion year-over-year. Productivity and Business Processes increased by 22% with Office products revenue increasing by 7%. Office consumer products rose 15% and Dynamics saw a 10% for the quarter.

A bit of a surprise in the report was the falling Microsoft Surface revenue. It fell 26% for the quarter despite the launch of the Surface Studio. The lack of significant hardware upgrades in the lineup likely impacted this the most and there is only rumor and conjecture at this point when the Surface Pro will get a technology refresh. Overall, personal technology numbers fell by 7% to $8.8 billion.

To the surprise of no one, the phone division suffered a $730 million drop in revenue. With there being only a handful of Windows Phone devices in the market, none of which are from Microsoft, this is hardly a shocker. While Microsoft has been vocal that Windows Phone is not dead, with roughly a 0% marketshare – literally – there isn’t much to consider “alive” on the phone platform.

Finally, gaming revenue was up 4% year-over-year with revenue increasing for Xbox software and service.